B2B ecommerce tops the agenda
A Stanford report has found that 96 percent of respondents are planning to expand their B2B e-commerce programmes, expecting increases in the number of customers, suppliers and business processes.
More than 60 percent of respondents anticipate an increase in their B2B Integration budgets to take advantage of the average cost savings of 40 percent technology provides in the order-to-pay process. More than half of respondents showed at least a 40 percent reduction in their order processing costs by using B2B integration technologies while others noted the same amount being saved d with shipment management and EDI/XML-based invoicing.
GXS, a leading provider of B2B integration services broke news of the report from the Stanford Global Supply Chain Management Forum titled, “B2B Integration: Business Value and Adoption Trends.” With funding provided by a gift to the university from GXS, the report offers insights into the latest trends and business value of B2B integration technologies.
“The increasing investment and adoption in B2B integration underscores its importance for companies. As the demands of managing global supply continue to grow, the complexities of connecting and collaborating electronically with global business partners grows increasingly vital,” said Steve Keifer, vice president of marketing at GXS. “The survey findings reinforce the importance of integrating B2B e-commerce operations for today’s companies to effectively operate their supply chains.”
Additionally, the survey found that, currently, a third of best-in-class companies were shown to exchange more than 60 percent of messages using structured messages (EDI, XML, Swift) rather than portals requiring manual keying. The survey also asked participants to estimate changes in transaction volumes over the next three years with 97 percent expecting B2B transaction volumes to increase. The majority foresee an increase of up to a quarter.
A growing number of companies have noted the potential business value of B2B collaboration in this highly competitive and distributed marketplace and are taking steps to improve electronic communication capabilities. This research aims to gain insight on the latest trends and business value associated with B2B integration technologies and results indicate the market is investing in increasing e-commerce programs and B2B integration efforts.
Report findings are based on a survey of nearly 100 users in North America, Europe and Asia, representing different industries including manufacturing, retail, financial services and logistics.
Uber Freight to Acquire Transplace in $2.2bn Deal
Uber Freight is to acquire logistics technology and solutions provider Transplace in a deal worth $2.25bn.
The company will pay up to $750m in common stock and the remainder in cash to TPG Capital, Transplace’s private equity owner, pending regulatory approval and closing conditions.
“This is a significant step forward, not just for Uber Freight but for the entire logistics ecosystem,” said Lior Ron, Head of Uber Freight, and former founder of the Uber-owned trucking start-up Otto.
Uber’s Big Play for Supply Chain
Transplace is one of the world's largest managed transportation and logistics networks, with 62,000 unique users on its platform and $11bn in freight under management. It offers truck brokerage and other capacity solutions, end-to-end visibility on cross border shipments, and a suite of digital solutions and consultancy services.
The purchase is the latest move by parent company Uber, which launched as a San Francisco cab-hailing app in 2011, to diversify its offering and create new revenue streams in all transport segments.
Transplace said the takeover comes amid a period of “accelerated transformation in logistics”, where globalisation, shipping and transport disruption, and widespread volatility are colliding.
Uber Freight plans to integrate the Transplace network into its own platform, which connects shippers and carriers in a dashboard that mirroring the intuitive experience found in its consumer vehicle booking and food ordering services.
“This is an opportunity to bring together complementary best-in-class technology solutions and operational excellence from two premier companies to create an industry-first shipper-to-carrier platform that will transform shippers’ entire supply chains, delivering operational resilience and reducing costs at a time when it matters most,” said Ron.
Frank McGuigan, CEO of Transplace, said the resulting merger will offer enhanced efficiency and transparency for shippers, and benefits of scale for carriers. “All in all, we expect to significantly reduce shipper and carrier empty miles to the benefit of highway and road infrastructures and the environment,” he added.
History of Uber Freight
Uber Freight was established in 2017 and separated into its own business unit the following year. In 2019 the company had expanded across the entire continental US, established a headquarters in Chicago. Later that year it launched its first international division in Europe, initially from a regional foothold in the Nertherlands, and later moving into Germany.
The logistics spinoff attracted a $500m investment from New York-based Greenbriar Equity Group in October 2020, and launched a new shipping platform for companies of all sizes in May, partly in response to a driver shortage in Canada.